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Case Study, 3 pages (550 words)

Sales force cloud computing case study

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Cloud computing involves delivery of computer software or hardware through internet. The end users of software or the hardware receive this application via a web browser. Cloud computing enables a firm to reduce the cost associated with the infrastructure. The firm is relieved the cost of developing of the infrastructure. As a result, the firm will be in a position to concentrate on other factors that affect the success of a business, to remain competitive in business, Salesforce. com has embraced cloud computing. The firm leases its software as opposed to other firm, which sell their software and hardware.

Question 1

The company provides a forum where the users of their software subscribe to access the software and hardware. The minimum subscription is $9 per individual per month. The subscriber pays an addition amount for an every advance version of the software and hardware. Many companies have benefited from the salesforce. com Services. Haagen-Daz, which is based in USA, claim that its running cost reduced from $65, 000 to $20, 000 after purchasing software and hardware from Salesforce. com. The time taken to implement the service of the salesforce. com is approximately three months. Salesforce System is accessible through a web browser while other of its function can be an access mobile device. As a result, the firm does not use operation system or data server for installation of software and hardware. This significantly reduces the cost of running the firm . salesforce. com constantly update its software. The company provides tools which enable the user to customize his or her device.

Question 2

Salesforce. com Company has faced many challenges during its operation. The company has faced stiff competition from giant companies such as Microsoft and SAP. The competing firm has also adopted the cloud computing. This makes the competition stiff as these firms enjoy economies of scale, unlike sales force. Salesforce . Com has low market coverage. It serves small market. These also create a challenge to the firm. The failure of the firm system has led to question its reliability in service delivery. The system failure that affected many transactions of its subscriber led to many of the subscriber to lose confidence of the firm. This failure was used by competing firms to question the credibility of the cloud computing. The company can deal with the challenge by merging with other firm. This is evidence by merging of salesforce. com with Google.

Question 3

Firms use technology in its operation should purchase software from salesforce. com. This is because the firms will reduce the cost of purchase and installing cost. The firm will also benefit from the flexibility of the software from salesforce. com this is because salesforce. com keeps updating its software.

Question 4

The cost of purchasing software from salesforce. com should be put in the consideration before purchasing software from this firm. If the cost is low as compared to the traditional method of purchasing software, then one has to purchase software from salesforce. com. An individual should also consider the efficiency of purchasing software from salesforce. com. If it is efficient for the intended purpose, one should purchase the software.

Question 5

Companies should not depend entirely on Salesforce. com, Force, and App Exchange. This because, the firms’ progress in the provision of service is doubtful. Analysts believe that the price of the subscriptions may increase in the future. This may limit individual to purchase the software.

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